Dividends4Life: This High Dividend Stock Pays Monthly And Has A Solid, Low Risk Business Model

Dividend Growth Stocks News

We're returning to the world of high dividend stocks this week, with a very interesting new find. This new stock ties into a mortgage-servicing giant that we covered in one of our recent articles, and is listed in the Financials section of our High Dividend Stocks By Sector Tables. Its compelling business model offers income investors the chance to secure a high dividend yield, with very low interest rate and mortgage default risk.

Home Loan Servicing Solutions, (HLSS), was formed to acquire mortgage servicing assets consisting of mortgage servicing rights, rights to fees and other income from servicing mortgage loans, and associated servicing advances. Since its March 2012 IPO, HLSS has nearly doubled its monthly dividend, increasing it from $.08 to $.15 currently. In addition, HLSS pre-declares its upcoming monthly dividends for each quarter, in the 1st month of the quarter, which helps income investors plan their cash flow. HLSS had 4x cash flow-to-dividend coverage in the 2nd quarter of 2013, and looking forward, has an 80% Dividend Payout Ratio.

Source: Seeking Alpha

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